Trump ends Syria sanctions: What it could mean for Lebanon

Report by Lea Fayad, English adaptation by Yasmine Jaroudi 

U.S. President Donald Trump has announced the lifting of all American sanctions on Syria, prompting a wave of calculations and expectations in Lebanon. 

However, caution surrounds this announcement, while headline-grabbing only begins a complex process.

Lifting sanctions involves a multi-step legal and political mechanism. 

Some sanctions can be removed through executive orders issued directly by Trump. Others, like the Caesar Act—widely regarded as the most consequential for Lebanon—require legislative action by Congress.

If the Caesar Act were repealed, Lebanon could benefit in key sectors, particularly energy. The country could resume long-stalled plans to import electricity from Jordan, natural gas from Egypt, and oil from Iraq—projects that require transit through Syrian territory. The result could be cheaper electricity for Lebanon's struggling power sector.

In construction, lifting sanctions could mark the beginning of Syria's reconstruction phase. Lebanese contractors with deep experience and capacity in the field could gain access to a large and growing market. This would also boost demand for Lebanese cement and revitalize local ports through the increased import of raw materials.

Agriculture and industry in Lebanon might also benefit, provided formal trade agreements with Syria are revived and properly regulated.

Meanwhile, the banking sector stands to recover significant assets and dormant operations in Syria, estimated to be worth around $1 billion. These operations could be reactivated if financial sanctions are lifted and regulatory restrictions eased.

Despite these promising opportunities, Lebanon's ability to benefit from any shift in U.S. policy toward Syria is far from guaranteed. 

Even if sanctions are lifted, Lebanon must first implement long-overdue financial, administrative, and judicial reforms. Restoring trust in its banking system and combating entrenched corruption are essential preconditions for tapping into potential economic gains.

Lebanon has borne the economic and social costs of the Syrian crisis since 2011. Today, as the regional landscape shifts, Lebanon has the right to benefit from change.